Gyms to tighten books under new regulations

COLUMBIA -- Fitness centers, known for clanging weights and pounding music, are adopting some habits not typically associated with gyms.

This month the South Carolina Department of Consumer Affairs announced tighter financial requirements on physical fitness centers.

“Many physical fitness facilities have closed during the economic downturn, leaving consumers who entered into prepaid contracts without a gym or their money,” said the agency in a statement.

If that happens, members should immediately cancel their contract and make sure they stop any monthly payment drafts. If a lump sum had been paid up front to a gym that closed, consumers are entitled to pro-rated refund. The agency also advises consumers to take note of automatic-renewal clauses in contracts.

The tighter accounting regulations for fitness centers became effective in May. Of the two-dozen 24 facilities that closed during the fiscal year that ended June 30, none were in Beaufort or Jasper counties, according to Consumer Affairs spokeswoman Juliana Harris.

- Base a center’s letter of credit or bond on the facility’s number of members, not the number of locations in operation.

- Notify Consumer Affairs the gym’s financial status changes. Among instances when the state agency must be notified: if the gym is going bankrupt, if a center is opening a closing, or if there has been a felony indictment associated with someone at the gym.

- File an annual report with the consumer-protection agency. This will allow state officials to evaluate the center’s financial stability.